BABA vs. SW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BABA and SW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BABA’s market capitalization of 254.63 billion USD is substantially larger than SW’s 24.64 billion USD, indicating a significant difference in their market valuations.
SW carries a higher beta at 1.02, indicating it’s more sensitive to market moves, while BABA (beta: 0.21) exhibits greater stability.
BABA trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, SW is a standard domestic listing.
| Symbol | BABA | SW |
|---|---|---|
| Company Name | Alibaba Group Holding Limited | Smurfit Westrock Plc |
| Country | CN | IE |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Packaging & Containers |
| CEO | Yongming Wu | Anthony Paul J. Smurfit |
| Price | 106.72 USD | 47.2 USD |
| Market Cap | 254.63 billion USD | 24.64 billion USD |
| Beta | 0.21 | 1.02 |
| Exchange | NYSE | NYSE |
| IPO Date | September 19, 2014 | July 8, 2024 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of BABA and SW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BABA
13.33%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
BABA’s Return on Equity of 13.33% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
SW
3.27%
Packaging & Containers Industry
- Max
- 20.97%
- Q3
- 18.53%
- Median
- 9.15%
- Q1
- 3.67%
- Min
- -15.31%
SW’s Return on Equity of 3.27% is in the lower quartile for the Packaging & Containers industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
BABA
7.90%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
BABA’s Return on Invested Capital of 7.90% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.
SW
2.28%
Packaging & Containers Industry
- Max
- 11.55%
- Q3
- 9.42%
- Median
- 6.03%
- Q1
- 2.83%
- Min
- -6.57%
SW’s Return on Invested Capital of 2.28% is in the lower quartile for the Packaging & Containers industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
BABA
13.06%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
A Net Profit Margin of 13.06% places BABA in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.
SW
1.95%
Packaging & Containers Industry
- Max
- 10.07%
- Q3
- 5.37%
- Median
- 3.61%
- Q1
- 1.49%
- Min
- -2.97%
SW’s Net Profit Margin of 1.95% is aligned with the median group of its peers in the Packaging & Containers industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
BABA
14.14%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
An Operating Profit Margin of 14.14% places BABA in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
SW
4.83%
Packaging & Containers Industry
- Max
- 14.60%
- Q3
- 11.93%
- Median
- 8.05%
- Q1
- 5.47%
- Min
- 2.09%
SW’s Operating Profit Margin of 4.83% is in the lower quartile for the Packaging & Containers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | BABA | SW |
|---|---|---|
| Return on Equity (TTM) | 13.33% | 3.27% |
| Return on Assets (TTM) | 7.21% | 1.07% |
| Return on Invested Capital (TTM) | 7.90% | 2.28% |
| Net Profit Margin (TTM) | 13.06% | 1.95% |
| Operating Profit Margin (TTM) | 14.14% | 4.83% |
| Gross Profit Margin (TTM) | 39.95% | 19.60% |
Financial Strength
Current Ratio
BABA
1.55
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
BABA’s Current Ratio of 1.55 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
SW
1.43
Packaging & Containers Industry
- Max
- 1.88
- Q3
- 1.79
- Median
- 1.38
- Q1
- 1.16
- Min
- 0.80
SW’s Current Ratio of 1.43 aligns with the median group of the Packaging & Containers industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
BABA
0.25
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
Falling into the lower quartile for the Specialty Retail industry, BABA’s Debt-to-Equity Ratio of 0.25 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
SW
0.80
Packaging & Containers Industry
- Max
- 2.47
- Q3
- 2.22
- Median
- 1.22
- Q1
- 0.79
- Min
- 0.56
SW’s Debt-to-Equity Ratio of 0.80 is typical for the Packaging & Containers industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
BABA
19.85
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
BABA’s Interest Coverage Ratio of 19.85 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
SW
1.83
Packaging & Containers Industry
- Max
- 6.21
- Q3
- 4.64
- Median
- 2.89
- Q1
- 1.61
- Min
- -0.51
SW’s Interest Coverage Ratio of 1.83 is positioned comfortably within the norm for the Packaging & Containers industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | BABA | SW |
|---|---|---|
| Current Ratio (TTM) | 1.55 | 1.43 |
| Quick Ratio (TTM) | 1.55 | 0.93 |
| Debt-to-Equity Ratio (TTM) | 0.25 | 0.80 |
| Debt-to-Asset Ratio (TTM) | 0.14 | 0.32 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.55 | 4.30 |
| Interest Coverage Ratio (TTM) | 19.85 | 1.83 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BABA and SW. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
BABA
3.41%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.41%, BABA offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
SW
3.11%
Packaging & Containers Industry
- Max
- 9.30%
- Q3
- 4.22%
- Median
- 2.67%
- Q1
- 1.42%
- Min
- 0.00%
SW’s Dividend Yield of 3.11% is consistent with its peers in the Packaging & Containers industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
BABA
22.23%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BABA’s Dividend Payout Ratio of 22.23% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
SW
177.18%
Packaging & Containers Industry
- Max
- 223.77%
- Q3
- 154.70%
- Median
- 54.74%
- Q1
- 23.39%
- Min
- 0.00%
SW’s Dividend Payout Ratio of 177.18% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | BABA | SW |
|---|---|---|
| Dividend Yield (TTM) | 3.41% | 3.11% |
| Dividend Payout Ratio (TTM) | 22.23% | 177.18% |
Valuation
Price-to-Earnings Ratio
BABA
13.64
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
BABA’s P/E Ratio of 13.64 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
SW
51.24
Packaging & Containers Industry
- Max
- 57.57
- Q3
- 40.45
- Median
- 25.12
- Q1
- 18.16
- Min
- 10.25
A P/E Ratio of 51.24 places SW in the upper quartile for the Packaging & Containers industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
BABA
1.26
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
BABA’s Forward PEG Ratio of 1.26 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
SW
2.85
Packaging & Containers Industry
- Max
- 3.19
- Q3
- 2.69
- Median
- 2.20
- Q1
- 2.02
- Min
- 2.02
A Forward PEG Ratio of 2.85 places SW in the upper quartile for the Packaging & Containers industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
BABA
1.85
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
BABA’s P/S Ratio of 1.85 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
SW
2.01
Packaging & Containers Industry
- Max
- 1.99
- Q3
- 1.28
- Median
- 0.99
- Q1
- 0.75
- Min
- 0.36
With a P/S Ratio of 2.01, SW trades at a valuation that eclipses even the highest in the Packaging & Containers industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
BABA
1.76
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
BABA’s P/B Ratio of 1.76 is within the conventional range for the Specialty Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
SW
1.38
Packaging & Containers Industry
- Max
- 5.73
- Q3
- 3.44
- Median
- 2.08
- Q1
- 1.76
- Min
- 0.55
SW’s P/B Ratio of 1.38 is in the lower quartile for the Packaging & Containers industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | BABA | SW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 13.64 | 51.24 |
| Forward PEG Ratio (TTM) | 1.26 | 2.85 |
| Price-to-Sales Ratio (P/S, TTM) | 1.85 | 2.01 |
| Price-to-Book Ratio (P/B, TTM) | 1.76 | 1.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 28.09 | -9508.47 |
| EV-to-EBITDA (TTM) | 10.32 | 20.13 |
| EV-to-Sales (TTM) | 1.95 | 2.55 |